Cars about to get cheap!

[man down]

Car Owners Fall Behind on Payments at Highest Rate on Record

Americans are falling behind on their auto loans at the highest rate in nearly three decades.

With interest rate hikes making newer loans more expensive, millions of car owners are struggling to afford their payments. It’s a clear indication of distress at a time when the economy is sending mixed signals, particularly about the health of consumer spending.

The percent of subprime auto borrowers at least 60 days past due on their loans rose to 6.11% in September, the highest in data going back to 1994, according to Fitch Ratings. In April that figure slipped from a previous high of 5.93% in January. But after burning through tax returns, contending with a shakier job market and grappling with still-elevated inflation, more car owners have become delinquent.

Behind the surge is both higher car prices and borrowing costs. And with the Federal Reserve indicating it plans to keep rates higher for longer, the problem is likely to persist, especially as millions of Americans recently started paying their federal student loans again. -BBG

[markusmod]

Damn right. My lease is coming up and the same car would be nearly double of what I pay now.

[IceTrayDaGang]

hell yeah!! can finally get that lambo!

[OldTerry]

Car Owners Fall Behind on Payments at Highest Rate on Record

Americans are falling behind on their auto loans at the highest rate in nearly three decades.

With interest rate hikes making newer loans more expensive, millions of car owners are struggling to afford their payments. It’s a clear indication of distress at a time when the economy is sending mixed signals, particularly about the health of consumer spending.

The percent of subprime auto borrowers at least 60 days past due on their loans rose to 6.11% in September, the highest in data going back to 1994, according to Fitch Ratings. In April that figure slipped from a previous high of 5.93% in January. But after burning through tax returns, contending with a shakier job market and grappling with still-elevated inflation, more car owners have become delinquent.

Behind the surge is both higher car prices and borrowing costs. And with the Federal Reserve indicating it plans to keep rates higher for longer, the problem is likely to persist, especially as millions of Americans recently started paying their federal student loans again. -BBG

I'm confused - I understand the math, but how does that lead to cheap cars?

[man down]

I'm confused - I understand the math, but how does that lead to cheap cars?

Repos. People won't have the credit to go out and buy a new car. Supply and demand.

[The Big Dunn]

Don’t understand the issue here.

People over extended themselves financially during and immediately after covid. Now they’re paying for it.

Subprime car loans, as with mortgages, are given to people with poor credit scores or no credit history. The interest rates are higher yo begin with, so a missed payment of any kind elevates them even more.

Car dealerships took advantage of people wanting to drive something more than they could actually afford.

Hope those impacted aren’t hurt too much. You just can’t live above your income level.

[ProblemChild_JakePaul]

Don’t understand the issue here.

People over extended themselves financially during and immediately after covid. Now they’re paying for it.

Subprime car loans, as with mortgages, are given to people with poor credit scores or no credit history. The interest rates are higher yo begin with, so a missed payment of any kind elevates them even more.

Car dealerships took advantage of people wanting to drive something more than they could actually afford.

Hope those impacted aren’t hurt too much. You just can’t live above your income level.

I feel for those people because there are well funded marketing efforts using big data to push those people into taking the loans and financing, to hell with whether they can afford it.

[Willy Wanker]

Cool! I can finally upgrade from my 1988 Honda Accord that I've been driving since I was 16, I just spent $12,000 on new rims though.

[The Big Dunn]

I feel for those people because there are well funded marketing efforts using big data to push those people into taking the loans and financing, to hell with whether they can afford it.

True. The problem is living above your means. I think many of us have done that at points in our lives.

Like I tell my kids- anyone with a job can afford to buy a Mercedes. Not everyone can afford the upkeep when it starts to breakdown. You have to be realistic about your financial position.

[markusmod]

True. The problem is living above your means. I think many of us have done that at points in our lives.

Like I tell my kids- anyone with a job can afford to buy a Mercedes. Not everyone can afford the upkeep when it starts to breakdown. You have to be realistic about your financial position.

Damn right. That's why I lease and don't finance.... usually cheaper and car is covered if totaled since gap insurance is free with a lease.